(FIIG) First Trust Exchange-Traded - Ratings and Ratios

First Trust Exchange-Traded Fund IV (NYSE ARCA:FIIG) is a corporate bond ETF that focuses on investment-grade debt securities, aiming to achieve its objectives by allocating at least 80% of its net assets to high-quality corporate bonds.

The funds investment strategy is centered around acquiring corporate debt securities that are rated Baa3/BBB- or higher by a nationally recognized statistical rating organization (NRSRO) at the time of purchase, or those deemed to be of comparable quality by the funds investment advisor if they are unrated. This approach is designed to minimize credit risk while providing a stable income stream.

With a non-diversified portfolio, FIIG is positioned to capitalize on opportunities in the corporate bond market, leveraging its focus on investment-grade securities to navigate varying market conditions. The funds assets under management (AUM) stand at $466.74 million, indicating a moderate level of investor interest.

From a technical analysis perspective, FIIGs recent price action has been relatively stable, with the last price recorded at $20.52. The short-term moving averages (SMA20 and SMA50) are $20.51 and $20.54, respectively, suggesting a neutral trend. The longer-term SMA200 is $20.45, indicating a slightly bullish underlying trend. The average true range (ATR) is $0.14, or 0.70%, reflecting moderate volatility.

Given the current technical and fundamental data, a forecast for FIIG could be constructed by analyzing the interplay between its price trends and the broader corporate bond market. With the 52-week high and low at $20.96 and $19.33, respectively, and considering the funds investment-grade focus, a potential price target could be near the upper end of its recent trading range, around $20.80-$21.00, assuming stable credit conditions and a continued demand for high-quality corporate bonds. Conversely, a decline in investor appetite or a rise in credit concerns could push the price back towards the lower end of its 52-week range.